An estimated 150,000 diamond workers have lost their jobs in Surat since the US imposed 50 per cent tariffs on Indian imports in August.

Many more are working shorter hours and struggling to survive on lower wages. The total workforce is between 800,000 and 1m.

India's polished exports for April to November were $8.2bn, down from nearly $9.0bn during the same period last year, largely in response to a reciprocal US tariff of 25 per cent, plus an additional 25 per cent as a punishment for buying Russian oil.

"About 15-20% of small diamond factories are now shut," Hasmukh Kakadiya, managing director of Surat-based manufacturer Kakadiam LLP, told the business news network CNBC TV.

"Workers from these units are unable to find jobs because no one is hiring. Roughly 10 to 15 per cent of workers have already become jobless, and it is difficult to say when the situation will improve."

Negotiating teams from the US and India have been working towards a Bilateral Trade Agreement (BTA) that could result in at least a partial lifting of the tariffs. Momentum is reported to be building towards a framework pact, possibly by March 2026.

Courtesy : IDEX